PNC Infratech Limited has informed regarding Resolution Plan submitted by the Company under CIRP for Gwalior Bypass Project Ltd (Corporate Debtor) in 2020 - Plan not approved - Settlement reached by the Company with the erstwhile Promoter/Director of the Corporate Debtor - Rs. 20.00 Crore Compensation received by the Company towards costs incurred by it as part of settlement.
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PNC Infratech submitted a Resolution Plan for Gwalior Bypass Project Ltd (Corporate Debtor) under CIRP in 2020, which was approved by the Committee of Creditors but never got NCLT approval due to ongoing litigation by Mr. Nakul Bharana, the erstwhile/suspended Director. The company's performance bank guarantee of Rs. 29.51 crore had been kept valid for nearly 6 years, and after protracted proceedings, PNC decided to settle rather than pursue the matter further. An amicable settlement was reached with Mr. Bharana, and the company received Rs. 20.00 crore as compensation for costs incurred. PNC issued a No Objection Certificate to enable Mr. Bharana to consider any offer under Section 12A of IBC.
While the settlement avoids further prolonged litigation, PNC Infratech absorbed a loss on this matter, receiving Rs. 20 crore against a Rs. 29.51 crore bank guarantee. The resolution plan never materialized into an acquisition. The settlement is neutral-to-mildly positive as it closes a 6-year-old contingency and brings Rs. 20 crore in cash.